Archive for October, 2009

Why Doesen’t Hulu Show Ratings?

There are reports on how many videos Hulu streams but how come they don’t tell us how many views individual shows are getting? Usually TV shows are quick to point out which ones are getting the highest ratings on TVs even though the way ratings are derived is anything but exact:

Nielsen is making an assumption using a sampling statistic based on 5,000 homes what the approximately 113 million U.S. television-viewing homes are watching.

Yet online, exact amounts of viewership is much more possible. Hulu knows exactly (almost exactly depending on the constraints of their web analytic providers) how many people are watching which shows, how many people drop out and watch shows only half way and they also know the mix of shows people are watching. For example, they would know that a high percentage of people who watch the Simpsons also watch Family Guy, etc.. Sure, Hulu has their “most popular videos” category but they don’t show how many views to substantiate their claim of what is most popular.

You would think they would advertise things like, “Come see the most viewed show on Hulu!” but they don’t, why not? They are hiding something. I bet there is some conflicting data between what the Nielson ratings show and what online shows and they don’t want their advertisers to know about it. And their “most popular videos” category is probably anything but the most popular. I think they cherry pick which clips they want people to watch more of based on which shows demand the highest costing CPMs.

What if Arrested Development is the most popular? But since that show is not airing on TV they don’t want people to like it more, they want people to like The Office more so they can get those people to tune in on Thursdays to sell more advertising. Is their new show Community, which is on the top row for most popular, among the most viewed? Doubtful, I bet they want more people to be exposed to the show since they have a lot riding on it becoming a success. Does Hulu take stocking fees like in supermarkets where networks pay them to put their show on the homepage? Maybe.

For sure they have some good reasons why they don’t reveal which shows get the most views.

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The SEO is Overrated Debate

I read this article thats ruffled some feathers lately about how SEO is not a legitimate form of marketing and I think what the article says is mostly right. Yet there are a few things about SEO in my opinion that make it worthwhile. In the article it says,

Look under the hood of any SEO plan and you’ll find advice like this: make sure to use keywords in the headline, use proper formatting, provide summaries of the content, include links to relevant information. All of this is a good idea, and none of it is a secret. It’s so obvious, anyone who pays for it is a fool.

This statement is absolutely true. Ranking better in search engines is no secret. All SEO comes down to three things: keywords on your site, other sites linking to yours and having your site code formatted correctly. People in SEO make a lot of hubub on all kinds of other stuff  other than those three things but in reality that’s all you need to do. A writer  for Search Engine Land who replied to the above writer makes a point that I think is very valid,

Still, sometimes people have problems. And the stuff that you think isn’t rocket science — that anyone knows — is indeed a mystery to others.

The fact that this information is well known doesn’t limit it’s value and won’t keep people from wanting someone to use that knowledge on their behalf. There is plenty of information out there on how to change the oil on your car by yourself but that doesn’t make Jiffy Lube a con man. Stock brokers also come to mind as people who are paid a lot to use other people’s money in an industry over which they have no control.
Nothing is stopping businesses from learning the best practices on how to get the most out of their website but they choose to pay experts to do it for them, so what’s wrong with that?

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Rocket Ship Marketing

Space ShuttleI think the correct way to do marketing, or the way the current landscape demands, can be explained using a metaphor having to do with comparing advertising to a rocket ship:

Whats Wrong With Big Rocket Ships (AKA Traditional Advertising):
1. Traditional rocket ships are big, complex and are explicitly designed to be controlled. These design requirements result in a huge increase in their cost and complexity, and decrease dramatically the probability of the success for the mission. Likewise, a traditional marketing plan is made to be as big and encompassing as possible. Since there is so much riding on it, the marketing must be controlled. With rocket ships and traditional marketing plans, it’s make it or break it.

2. A Rocket ship uses 80% of its fuel in lift off. Once it gets past the lift off stage its pretty much on its way. Likewise, it takes 80% of the marketing budget to launch a new campaign before it has a chance at catching on. What if the idea is a dud and you can’t tell until  after spending 80% of the budget?

3.With the rocket ship costing so much money and taking so much time, it needs to be successful. Traditionally we are continually looking for a “hit” in advertising, something that will spread and become part of pop culture. While trying to predict the likely success of a chosen brand message being a hit, inordinate amounts of money and energy are spent, often, all in vain. Who knows what will be a “hit”? Nobody.

The Solution To The Traditional Rocket Ship Is Replacing It With Hundreds Or More Mini-Rockets:
1. Mini-rockets are cheap to make and launch. And since you don’t have to rely on only one to succeed dramatically well, they don’t need to be built in with fail-proof security and reliability (the reason why traditional rockets cost so much and take so long to build.)

2. Continually measuring the mini-rockets as they go, you can build on the ones that are working and cut back on the ones that aren’t in real-time. Having a budget split up this way allows you to not waste more money than is needed before cutting back on ideas that aren’t working. By relinquishing control, the mini-rockets would be on their own, only bothering to send back whatever they discover.

3. No one knows what is going to be a hit. It’s also hard to tell which demographic will best respond to any particular media. But you stand a better chance at finding a hit with a hundred estimated guesses at a dozen different demographics than one big idea. Then, after launching the multiple mini rockets, you  can let the data tell you which one is the best and continue to fund that one.

This strategy requires the brand to forgo the single-minded brand proposition and embrace long tail thinking. Every brand has more than one potentially ideal consumer. But the big rocket ship’s only option is to target one demographic broadly to capture as many people in that demo as possible. This creates a bland campaign that doesn’t resonate perfectly with anyone since it’s trying to attract as many people as possible by being broad. Targeting the “edges” of the tail instead of the masses, or “head” of the tail, requires narrowing your list down to those most likely, most interested people and ignore everyone else.With mini-rockets you can target very specific demographics with a very specific message. Sure, the amount of people you are reaching is less but your chance for success is higher. This is also much cheaper. Target a dozen different demos and try sending a rocket to them all. These smaller niches, in aggregate, can be composed of as many people as the “head” of the tail and stand a better chance of accepting and spreading your brand.

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The Big Idea Is Dead

The “Big Idea” in marketing made sense years ago when the internet wasn’t here. It was wise advice when it came to writing a newspaper ad for example. If an ad said, “we have the best location, best service, best prices and best products,” chances are the ad isn’t going to be effective because the ad is throwing too big of a net and no one is going to believe it – no one is that good. So brands would create a “big idea” to help customers understand and remember as fast as possible for example, “our brand is the cheapest.” Thats big, it resonates with the those who want the cheapest and it has the ability to chisel a spot into the audience’s mind. Simple. Big. Believable (maybe).

Since the newspaper has such big reach, hundreds  of thousands of people would see the ad but only 5%, or less of them would really care deeply about finding the cheapest brand. So a brand effectively wastes money advertising to 95% of the people who don’t use cheapest as their main filter for making buying decisions but instead care about best quality, reliability, customer service, no-hassle buying, convenience, brand image, and a whole host of who knows what. But that’s OK because usually that 5% or less was enough to make it worth it.

So back then you advertised to as many people as possible, pitching one idea that doesn’t apply to everyone but still bland enough to cast the biggest net possible, hoping that your message does reach the people that you are intending it for. Today people are much better at avoiding ads they don’t want to see and are less of a mass and more a mass of niches.

Had the ability to target and measure the effectiveness of your media in real time existed back then, I doubt the “big idea” would  have ever been created. Back then you couldn’t accurately or affordabley target males 18-21 with HHI of $80,000 +, who like japanimation and Nine Inch Nails. That audience would have been too hard and expensive to find and wouldn’t have been big enough give a return on investment to justify the effort.

Not anymore.

Want to target stay at home moms, age 30 – 45, HHI $100,000, who are green conscience and like scrapbooking? OK. Why not choose the 10 most ideal micro-demographics and tailor your media just for them? They will find it super relevant and have a much better chance of connecting with the brand and spreading it to others.

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Earning Attention In Marketing

I think there is a lot to be said about having a marketing strategy to create content/earn attention as opposed to buying media/buying attention. I’ve gotten used to most advertisements being  avoidable if I don’t want to pay attention to them, so when there are ads that I can’t avoid, like video pre-rolls or in shows on Hulu, I find that I have half the amount of patience with them and dislike the companies more as a result. Don’t try to force me to watch something I don’t want, which to me, does more harm than good. This is a good video below explaining the idea. From the video: “how can I help you accomplish the task you are looking  to accomplish versus interrupting you and distracting you from that task?”

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